SpaceX shares rose more than 8% on Wednesday after the company launched its Grok 4.6 AI model, and Elon Musk told employees AI revenue will probably exceed every other part of the business by September. Musk also cited Starlink's subscriber count in an all-hands meeting, while Morgan Stanley says the stock could more than double if SpaceX proves it can compete with frontier AI labs.
SpaceX shares rose more than 8% on Wednesday after the company unveiled its Grok 4.6 artificial-intelligence model, with Musk telling employees AI revenue will probably exceed every other part of the business by September.
Grok 4.6 launch drives the rally
SpaceX launched Grok 4.6 on Wednesday, nearly a month after introducing Grok 4.5, with the new model built for long-running AI agents and complex tasks, the company said in a blog post. Artificial Analysis, which ranks AI models, said Grok 4.6 scored five points higher than Grok 4.5 on its Intelligence Index, putting SpaceXAI back at the intelligence frontier alongside OpenAI and behind Anthropic.
The model scored in line with OpenAI's GPT-5.6 Sol but trailed Anthropic's Claude Opus 5 and Fable 5, though Artificial Analysis noted Grok 4.6 appears cheaper than its rivals. On Tuesday, SpaceX also opened a beta program for Grok Bot, offering AI-teammate features that can perform tasks with limited supervision.
Musk points to Starlink's subscriber count
At an all-hands meeting, Musk told employees that Starlink now has 22 million mobile subscribers. The company had 12 million fixed internet users as of the end of the second quarter. Shares have moved past their initial public offering price of 135, and late Tuesday the company launched 24 Starlink satellites to low-Earth orbit from Vandenberg Space Force Base.
According to MarketWatch, Musk told employees in a presentation that AI revenue will "exceed all other SpaceX revenue probably" by September, with much of that revenue tied to compute deals with Alphabet and Anthropic.
Analysts weigh SpaceX's AI ambitions
Morgan Stanley analyst Adam Jonas wrote in a note to clients that SpaceX needs to show it can ship products competing with frontier AI models before it can be valued as more than a neocloud company. He expects a wide range of products co-developed by Cursor and SpaceXAI beyond code generation, and sees room for SpaceX shares to more than double from current levels.
SpaceX agreed in June to acquire Cursor in a $60 billion deal expected to close this quarter.
Sources: MarketWatch, Investor's Business Daily
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